Sarantis: New deal in Poland – Developments in the Ukrainian market

In the shadow of the Ukraine war and while the consequences of the closure of the Ergopack factory are unknown, the listed company Sarantis “counterattacked” by announcing the acquisition of 100% of the Polish consumer consumer goods company Stella Pack through its subsidiary Sarantis Polska S.A.

Stella Pack is a leader in the production and distribution of household goods, with 25 years of presence in the categories of food packaging, garbage bags and cleaning tools, recording annual sales of approximately 65 million euros.

The acquisition is under the normal closing conditions and the approval of the competition authorities in the countries of activity of Stella Pack is pending.

Saranti’s presence in Poland was strengthened in 2015 when it acquired Polipak, which accounts for about 17-18% of the listed company’s total sales. The company has a production plant and storage facilities in Poland and is active in the production of polyethylene packaging products (mainly waste bags).

It should be noted that the Greek group has been active in Poland through a subsidiary since 2000, while it has acquired the LUKSJA brand. With the new acquisition, the group strengthens its presence in the home care products sector.

At the same time, the group’s management is looking for alternative routes to supply regional markets such as Georgia, Azerbaijan, Moldova and surrounding countries, which accounted for 50% of sales in Ergopack, Saranda’s subsidiary in Ukraine. in the city of Kaniv.

The needs of the countries covered by Ergopack for export may be met by other subsidiaries of the group, such as those in Romania and Poland.

It is recalled that Sarantis announced the temporary closure of the factory of its subsidiary Ergopack LLC with 600 employees immediately after the Russian invasion of Ukraine.

In 2021, Ergopack LLC’s dollar-based sales, limiting potential losses due to currency fluctuations, accounted for 6.7% of the group’s total sales, while Hoztorg LLC’s sales in 2021 accounted for 0.5%. .

The listed company also has a subsidiary in Russia, Hoztorg LLC, which produces household goods. The sales of this company represent only 0.5% of the total sales of the group, while the cooperation is at a commercial level and not production.